XRP surged close to the $3 mark this week, buoyed by renewed investor optimism and mounting pressure on regulators as Grayscale Investments formally challenged the U.S. Securities and Exchange Commission (SEC) over its decision to pause approval of a multi-crypto exchange-traded fund (ETF).
XRP Rally Gains Momentum
XRP, the native token of Ripple’s blockchain, extended its rally to trade just below $3 — a level it hasn’t seen in several years. The token has benefited from a broader bullish sentiment in crypto markets and from clarity following Ripple’s ongoing legal battles with the SEC over XRP’s regulatory status.
Analysts attribute the latest price spike to speculation that a favorable regulatory environment and potential institutional inflows could further legitimize XRP as a mainstream digital asset.
Grayscale Pushes Back Against SEC
Meanwhile, Grayscale has taken the SEC to task after the agency put a hold on its proposed multi-crypto ETF. The product, which would track a basket of leading cryptocurrencies including XRP, Bitcoin, and Ethereum, was expected to open new avenues for institutional and retail investors alike.
In its petition, Grayscale argued that the SEC’s decision was “arbitrary and inconsistent” given its approval of single-asset crypto ETFs earlier this year. The firm contends that a diversified product would offer investors broader exposure and reduced risk, aligning with the SEC’s own stated goals of protecting investors and fostering fair markets.
Industry Awaits SEC’s Next Move
The SEC has yet to respond formally to Grayscale’s challenge, but the outcome could have wide-ranging implications for the crypto ETF landscape in the U.S. A favorable ruling for Grayscale could pave the way for more diversified crypto investment products, potentially driving further institutional adoption.
For now, investors remain focused on XRP’s momentum and the broader implications of Grayscale’s legal push as the crypto market continues its recovery.
